Reference no: EM133061119

Question - On January 1, 2022. Palmor Corporation purchased 80% of the outstanding shares of Subsidiary Company for a consideration of PI9,000.000. Including in the price paid is control premium in the amount of P500,000. At that date, Subsidiary had P16,000,000 of ordinary shares outstanding and retained earnings of P6,400,000. Subsidiary's equipment with a remaining life of 5 years had a book value of P9,000.000 and a fair value of Pl 0,520,000. Subsidiary's remaining assets had book values equal to their fair vales. The income and dividend figures for both Palmor and Subsidiary are as follows: Net income of Parent in 2022 is P3,600,000. Net income of Subsidiary in 2022 is Pl,360,000. Dividends declared by Palmor in 2022 is P880,000. Dividends declared by Subsidiary in 2022 is P280,000. Palmor retained earnings balance at the date of acquisition was P13,800,000.

1. What is the consolidated retained earnings attributable to controlling interest in 2022?

a. 18,156,800

b. 17,140,800

c. 17,276,800

d. 17,763.200

2. What is the non-controlling interest in net income in 2022?

a. 211,200

b. 238.400

c. 272,000

d. 332.800

3. What is the consolidated profit in 20222?

a. 4,568,000

b. 4,689,600

c. 4,432,000

d. 5,016.000

4. What is the non-controlling interest in net assets at the end of 2022?

a. 4,905,200

b. 4,780,200

c. 4,784,000

d. 4,939.200